McDonald's and KFC Corporate Responsibility. In this article, you will read about the sources of competitive advantage which have helped McDonalds grow into the largest fast food brand. It also operates within the fast-food industry. KFCs training program for its employees is based on the development of technical, managerial, and communication skills. McDonalds is a favorite fast-food for most Americans. Differentiating between the two will help obtain the best out of the products that the two brands offer their customers. The goal of an organisation that seeks to have sustainable supply chains is to ensure harmonisation of all stakeholders with sustainable supply chain strategies. While doing the market segmentation for the products, the target market has been well studied and investigated. It is headquartered at Louisville, Kentucky. This means appealing to families who love our iconic Happy Meal, to workers grabbing breakfast on-the-go or eating in. Apart from it working professionals who need a quick bite also rely on McDs for it offers the right food at the right prices. For example, while McDonalds and Burger King both sell burgers, McDonalds offers a Big Mac while Burger King offers a Whopper. Gone are the days when McDonalds enjoyed competitive advantage simply because of their unique product line. Beside that, KFC company was ranked in number two in the analysis. So think about KFC for a minute. 14 no. Analyzing other companies who provide the same products or who can meet the same needs in various ways is one way to look at other companies. Maloni, M. & Brown, E. 2006, Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry, Journal of Business Ethics, vol. Based on these assertions, the paper has regarded the embracement of concepts of CSR as one of the ways of ensuring that supply chains for both organisations remain sustainable and competitive. In 1987, it was amongst the first western-based organisations that opened new business branches in China. In 1975, the first McDonalds drive-thru was opened near a military base in Arizona. However, apart from food, it has all focused on customer service. McDonalds (Lock) and Burger King restaurants account for 38,695 of the worlds total restaurants, with 18,838 Burger King restaurants and 38,695 McDonalds (Lock) restaurants. Web. 4. This is one of the hallmarks of McDonalds success. McDonalds food has dominance over the market with its cost effectiveness and availability. Cheeseman (2013, Para. Thus, the KFC maintains its competitive advantage from its inimitable resources. IvyPanda, 2 Aug. 2021, ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. McDonalds strategy is to differentiate itself through efficiency and quality. McDonalds has been trying to get into the breakfast market for sometime, but they have come under criticism about their treatment of their workers. Indeed, its founder, Harland Sanders, realised that the organisation would function under this model in 1952 when he opened the first franchise at Utah. McDonalds is the worlds leading global foodservice retailer with over 37,000 locations in over 100 countries. With more than 17,000 international units, KFC enjoys a strong global presence (Crittenden, Crittenden and Pierpont 2015, 610). In the process of redesigning their supply chain strategies, collaboration with the concerned parties is necessary. 2) confirms, Cheap food comes with steep hidden costs to the people who produce it, sell it, and eat it, to the environment, and to future generations. Can KFC and McDonalds operate sustainably? It has managed its supply chain well which helps it ensure continuous supply of good quality raw material and hygienic food for its customers. KFC also has a strong presence in China, which is a key growth market. 67-71. For instance, KFC have chickens come with whipped potatoes, salads, buns and soft drink but McDonalds have fried chickens with French fries and soft drink only in both fried chicken set. It also encompasses coordination and integration of flow of materials among organisations. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. This strategy is formulated to ensure that McDonalds creates customer experiences that are consistent across all franchises and the company-owned stores. The Hamburger University was created to train franchise owners and help franchisees in the restaurant industry. Faced with modern problems that are associated with the production and distribution of products, supply chains managers in the two organisations deserve plausible information about the implications of supply chain and logistics strategies on physical and environmental participants in a bid to create socially corporate organisations. McDonalds was always known for its great values! 2012, Sustainability and The Supply Chain: How to Reduce Cost and Save the Environment, Manufacturing business technology, vol. Targeting children is seen as a form of social engineering. It has quality centers around the globe which ensure that the high standards company has set are consistently met. Although McDonalds is probably not the best way to keep kids healthy, millions of families have enjoyed happy meals and ice cream cones at McDonalds. Its franchisees achieved net sales of 78.2 Billion dollars and the companys revenue from the company managed restaurants and franchisee fees was 22.8 Billion dollars. 573-580. On July 30, 2021, the market capitalization of the company was estimated to be $181 billion. The rivalry between McDonalds and Burger King is a classic example of business. Your privacy is extremely important to us. Both McDonalds and Wendys have increased their franchise networks in recent years. Apart from intense competition and pricing pressure, there are other reasons too that businesses have to struggle to retain their existing customers and build strong customer loyalty. McDonald is always successful in sustaining a good image in hearts of its customers. Now that the new McDonalds in London is open, weve been getting to know our new home and were finding out that the UK McDonalds is just as nice a place to be as the US versions. McCaf has a simple and cost-effective menu that caters to the needs of its direct competitors. Products enable a company to differentiate itself from competitors and gain competitive advantage. According to World of Buzz in 2017, a Malaysian guy has done comprehensive fried chicken review from both fast food franchise, which is KFC and McDonalds. KFC is among the renowned fast food restaurants that have been in the industry for quite a significant duration. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. McDonalds is a global fast food restaurant chain headquartered in Chicago. KFC is a subsidiary of Yum! McDonalds restaurants and franchises, which stand at about 33, 500, continue to grow as the organisation penetrates new markets in Asia (Wilhelm 2010). An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. Besides the national restaurants, there are other western fast-food organisations like Burger King and KFC that pose tough competition to McDonalds by offering similar product lines. KFCs competitive advantage is derived from its ability to differentiate and recognize market specialization in its product and service offerings (Guide, 2006). 35-52. McDonalds may have to reconsider its product quality as customers become more health-conscious. Such costs include a reduction of the extent of global warming by cutting down the emission of greenhouse gases (Orsato 2006). McDonalds restaurants are mainly run through independent franchisees in more than 100 The original McDonald's restaurant, featuring a ten-item menu built around a 15 cent hamburger, in San Bernadino, California, circa 1955. To achieve this goal, the organisation advocates a bureaucratic formal management structure. McDonalds is an indirect competitor of Burger King, Nordsee, Subway, and Pizza Hut. professional specifically for you? August 2, 2021. https://ivypanda.com/essays/mcdonalds-and-kfc-corporate-responsibility/. Finally, McDonalds is well-known for its Ronald McDonald character, which helps to create a sense of fun and excitement around the brand. This immense success of McDonalds is attributed to a number of factors such as its incredible emphasis on engagement of consumers, appropriate leaderships that fits the business of the organisation, and exceptional investments of the organisational resources in brand management. This tradition and the companys ability to change has allowed McDonalds to be one of the few companies that have continuously held on to their competitive advantage. Fast food outlets in their chain are committed to keeping their stores clean, consistent, and enjoyable to their customers. While McDs mainly serves a uniform menu globally with no substantial variations except for small regional ones, its menu is still quite large and diversified. Aggressive food service competitors threaten McDonalds and impose a major strategic challenge in this SWOT analysis. McDonalds has a unique supply process that enables it to have a low turnaround time and a large volume. McDonalds website states that each location uses a daily, weekly, and monthly schedule of cleaning tasks. McDonalds focuses on the development of business models, which pay attention to employee concerns. Global presence has led to higher sales and revenue for the brand. Over the years McDonalds has made an effort to maintain consistency by sticking to the same formula and by maintaining a high quality process. 25 no. Amid undergoing various corporate transformations in a bid to establish a competitive advantage, KFC has not gone without challenges that are articulated to the need to enhance sustainability in its supply chains. KFC competes against McDonalds the most. Development of successful relationships and closer alignment of strategic decisions in supply chains is important for sustainable supply chains. They understand that their customers have distinct needs, which sets them apart from their competitors. Porters Five Forces Model (which can be used for competitive analysis) provides a strategic framework for evaluating a companys competitive environment. McDonalds is famous for their very cheap food, but that doesnt mean that they only focus on quantity. KFC focused on popularisation of chicken in a market that was dominated by hamburger consumers. It has an excellent infrastructure that distinguishes itself in addition to being quick on the service clock. McDonalds has a long tradition of innovation. We use cookies to ensure that we give you the best experience on our website. June 20, 2022. In this way, a large menu becomes a source of distinct advantage for McDonalds which is the favourite fast food brand of a very large group of customers from all generations. From the perspective of balance meals, KFC did a better work than McDonalds because their meal has more protein, carbohydrates, and vegetables. For instance, KFC have chickens come with whipped potatoes, salads, buns and soft drink but McDonalds have fried chickens with French fries and soft drink only in both fried chicken set. McDonald's Competitive Advantage. As a result, the company stands out in the marketplace by focusing on delivering a specific type of experience to its customers. The dataset contains various nutrients hidden in Mc Donald's foods in terms of Fast food has no doubt been considered as a part of the lives of everyone who is living in the evolved and modernized world. Is KFC healthier than McDONALDS? KFC China tends to introduce more new products than its competitors (Jeon et al. However, if compare with Texas Chicken, KFC have a better innovating menu, because the core dish of Texas Chicken is just focus on fried chicken. Franchise business model was a success because it allowed franchisee to uniformize and standardize operations, and provided predictability and stability. The challenges of associating McDonalds fast foods with obesity and health challenges such as diabetes and heart attack also influence KFC (Barnett 2010). They will release out various kind of food according to the season. 8 Why is KFC the best fast food restaurant? The success of the company led to the growth of the fast food industry and the company was named to Fast Food Hall of Fame in 2009. Such products deserve to create value to their consumers. Green technology and green products communities will be interested to know whether products that are supplied by both McDonalds and KFC through their supply networks meet the concerns of environmental protection. Customer service and convenience are critical factors in differentiating businesses that offer efficient services and convenience. 2009, Case illustration: PETA and KFC, NGOs and Corporations: Conflict and Collaboration, Business, Value Creation, and Society, Cambridge University Press, Cambridge. The idea is to give customers a more natural product. KFC is better than Texas Chicken according to innovating menu such as Mac and Cheese, Cheezy Mushroom Crunch, and Chizza. Ciliberti, F. 2009, Codes to coordinate supply chains: SMEs experiences with SA8000, Supply Chain Management: an International Journal, vol. It has helped McDonalds build a distinct brand image and identity among the fast food brands which works as a source of competitive advantage achieving higher brand recall and sales. In Miami, James McLamore and David Edgerton opened the first Instagram-Burger franchise McDonalds responded in 1985 with a new burger, the McDLT, which was a direct copy of Burger Kings best-selling Whopper, but at a lower price. She is very professional, meet all the requirements, fast turn around time, communicates, and an overall 100/10. McDonalds has been criticized for its advertising to children. View this and more full-time & part-time jobs in However, again Texas Chicken sales volume are not stated in the statistic portal. Franchise networks in recent years down the emission of greenhouse gases ( 2006... 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